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question on partial year income tax...

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gobonas99

Member
What is the name of your state? New York

My husband is looking into taking a temporary work assignment in Maryland. It would be a 12 month assignment scheduled to begin at the end of June. I would be staying here in New York, with the house.

My husband would basically be living in one of those home-away-from-home hotels, or else the company would rent a furnished apartment for him.

He would be being paid by the Maryland location of his company for the time that he is there.

How will this effect our taxes? Would he be considered a resident of Maryland or of New York? Will we owe taxes to BOTH Maryland AND New York for his income?

I tried to search for this info online, but maybe I wasn't using the right search terms, because all I found was info on if one is PERMANENTLY moving to another state.

Also, how will this effect our federal taxes, if at all?

Thanks!
-Christina
 


abezon

Senior Member
Federal taxes: have him keep every receipt from MD. All the hotel bills, utility bills, cab rides, tools purchased, phone cards to call home, cell phone, internet access, etc. Come tax time, he'll be able to claim employment deductions on Form 2106. He enters all his expenses, then subtracts the reimbursement from the company. He should also keep a mileage log listing miles driven to MD & miles driven while in MD. Don't forget non-travel expenses like union dues, safety equipment, computers (if used), continuing education/books/publications, uniforms (not just nice work clothes) etc. Keep all your employment expenses too. You can combine your employment expenses.

Then take everything to a tax preparer who's done lots of 2106s.


State taxes: You'll probably file as a NY resident jointly. You'll also file a non-resident return for MD. You'll likely get some sort of credit on your NY taxes for the tax paid to MD. Call an H&R Block near the MD/NY border & ask about credits. (Are NY & MD bordering states? From Washington they all look little teeny dots that you could bike across in a day.) :)
 

gobonas99

Member
As far as receipts go...he will put everything (hotels, car rental, etc) on his corporate card, which is paid directly by the company. (I can email you the TDY policy if you think it would help - I'd rather not post it online.)

I don't have any employment expenses for my full-time job. I have my own business selling Princess House that I file a Schedule C for. Since I am an accountant, I do all our taxes myself (with a little help from TurboTax :D ) - hey...I didn't pay for a Bachelor's AND a Master's degree for nothing. :D Although I DO believe that part of the benefits of the TDY is reimbursement of tax preparation up to $200, so maybe I'll at least get some assistance before we file. :)

Unfortunately, there is no H&R block near the NY/MD border, since the big ole state of Pennsylvania is smack dab in the middle of them. :D

Oh hey...one other question for ya....how is the new tax law going to effect us? I know they increased the MFJ standard deduction to $9500, and they upped the 15% tax bracket to the first $56,800 in income for MFJ. The new withholdings haven't been implemented yet for either of our workplaces. So for when it comes tax time (I ususally try to estimate them between TG and Xmas to STEEL myself for the bad news)....will I need to steel myself again for ANOTHER tax hit (we got hit with the marriage penalty in 2001, and we only had a partial year of mortgage interest and taxes last year)...or do you think we'll be okay. (We've been pretty much breaking even on NYS taxes.)

Thanks again for your help!
-Christina :)
 
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